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By: Ahura Chalki
1.74% decline, what next?
Despite unclear and doubts regarding the phase-one signing of the US-China trade deal, gold lost about $30 or 1.74% in one day, on Tuesday. From most important US economic data, yesterday the ISM Non-Manufacturing Index came in at 54.7, better than expectations of 53.5 in October and Trade Balance came in at $-52.5B in line with forecasts for September, however, JOLTs Job Openings in September was 400 thousand less than expectation at 7.024M, compared with 7.028 of forecasts. For today, Unit Labor Costs (Q3) and Nonfarm Productivity (Q3) will be in the spotlight, while still investors waiting for credible reports from the trade deal, phase-one. Generally, the situation is uncertain and side movement of Gold in Asian season is because of that.
Technical indicators mostly remain of more decline, while Parabolic SAR started to form its dots under Candles in the H1 chart. RSI moves under 50-level in both H1 and H4 charts, while EMA crossing strategy also supporting the bears. $1491.50 is the immediate resistance while breaking the key support level at $1478, can open the doors for next support at $1469, sits at 61.8% of main Fibonacci levels.
Pivot point: 1488.90
Resistance levels: 1498.48 / 1519.33
Support levels: 1468.05 / 1458.47
Today the expected trading range is between 1458.45 support and 1498.48 resistance.
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